Which of These Is Not an Example of Indirect Bankruptcy

question 66

Multiple Choice

Which of these is not an example of indirect bankruptcy costs?

• A) A firm's customers become concerned about whether or not warranties will be honored.
• B) Employees begin to leave the firm.
• C) New accountants are brought in to help with the bankruptcy process.
• D) A bankruptcy judge orders new projects to be halted.

---

Definitions:

Operating Budgets

Detailed projections that outline the expected income and expenses for an organization over a specific period, guiding its business operations.

Labour

The physical and mental effort used in the production of goods and services.

Equipment

Tools, machinery, or other apparatus necessary for the performance of specific tasks.

Zero-based Budget

A budgeting method that starts from zero each new period, requiring all expenses to be justified for each new period.